New Standards for Residential Water Heaters Effective April 16, 2015

Hot water heaters account for approximately 20% of the energy usage in homes. The new requirements set by the Department of Energy (DOE) and the National Appliance Energy Conservation Act took effect on April 16^th. These new standards apply to almost all residential gas, electric, oil and gas tankless water heaters.  They will save approximately 3.3 quads of energy and result in approximately $63 billion in energy bill savings for products shipped from 2015-2044. This will also result in reduction of approximately 172.5 million metric tons of carbon dioxide emissions, equivalent to the annual greenhouse gas emissions of about 33.8 million automobiles.

What this means to the consumer is that for gas hot water heaters in the 30 to 50 gallon size, it will require more insulation and adding about 2 inches additional diameter to the tank size. This may be a problem when you are replacing an old water heater in a small space or with a tight doorway. Tank heaters which are 55 gallons and larger will be more expensive to install as they may require an electrical outlet to power new controls which are necessary to meet the new higher efficiency requirements. 

The changes will also mean more expensive prices with some of the larger water heaters increasing as much as 35%. The mandatory rules require a higher energy factor “EF” for new units. The EF, indicates a water heater's overall energy efficiency based on the amount of hot water produced per unit of fuel consumed over a typical day. It also accounts for recovery efficiency — how efficiently the heat from the energy source is transferred to the water; standby losses — the percentage of heat loss per hour from the stored water compared to the heat content of the water; and cycling losses — the loss of heat as the water circulates through a water heater tank. The higher the EF, the more efficient the hot water heater. The table below shows the old and the new EF requirements:  

These new standards will make hot water heaters more expensive, larger in size and more difficult to install. But, it should also result in substantial energy savings thus saving money for families, reduce carbon pollution, and enhance our energy security.